Preparation
The IP will want to know details about all assets and liabilities. Figures do not need to be to the penny.
As part of an information pack that will be issued to creditors you will be asked to provide a brief history of the company's trading, explaining why the business is in the situation it is. Doesn't need to be a novel. It might be, based on the size of your company/debts that a handful of paragraphs is enough.
Most IPs would issue you with a questionnaire to work through to gather information they need. Answer as best you can, it is understood not every field will have an answer.
Box up the company records, ready to hand over to the Liquidator.
Typically you would stop any direct debits and standings orders on the company bank account. Don't make any further payments.
The CVL Process
Usually you would receive advice from the IP, in the form of an options letter.
If you chose to proceed with a Liquidation you will be issue an engagement letter and need to provide ID verification.
Once engaged the IP will want the company info as outlined above. As regards assets there may be a need to involve an agent to provide a valuation.
The IP prepares board minutes, statutory notices and statement of affairs etc for you to review and sign.
Formal notice of the insolvency is then issued to creditors. The process can be done a couple of ways, but commonly we use a process called deemed consent. Typically creditors are given about a weeks notice.
Once the Liquidation commences your powers of a director cease and the IP will take over control of the assets and deal with creditors.
You will be required to cooperate with any reasonable requests, but often you may not need to be involved much. You may be asked to complete a fairly basic directors questionnaire, to assist with their investigations.
Deliver up any company records in your possession, if not handed over prior to the Liquidation.
